U.S. consumer agency to move forward with ‘open banking’ rule this week

(Reuters) – The U.S. Consumer Financial Protection Bureau will move forward this week with an “open banking” rule that could dramatically boost consumer finance competition and increase Americans’ access to financial services.

In a speech on Tuesday, CFPB Director Rohit Chopra said the agency expects to propose requiring financial institutions that offer transaction accounts to set up secure methods for data sharing, and will develop requirements to limit the misuse and abuse of personal financial data.

The agency will release a discussion guide this week for small businesses to weigh in on the proposed rule, with the goal of formally proposing a rule in 2023.

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